The Motley Fool

No savings at 40? I’d buy these FTSE 100 shares in an to ISA get rich and retire early

Image source: Getty Images

Are you a member of the ‘no savings at 40’ club? If so you might be thinking that you’ve blown your chances to get rich and retire early. You’d be wrong, although it’s probably is best if you get your skates on and start about share investing.

Even if you’re 40 years of age and don’t have anything saved up for retirement you still have time to build a decent nest egg to retire on. Studies show that long-term share investors – that’s those that buy shares and hold them for a decade or longer – tend to make great returns of at least 8% per year.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Senior couple at the lake having a picnic

It’s never too late

It’s still possible to get rich and retire early by buying UK shares, then. I’ve made some calculations to show how. For example, based on that minimum 8% figure, someone aged 40 who begins investing £500 per month in UK shares can expect to make a return of £450,000 before they reach the usual retirement age of 65.

It’s clearly never too late to begin investing. I’d argue in fact that the need to build any sort of retirement fund for your later years is a necessity whatever your age. Forget about any notions of trying to get rich for a second. With the State Pension coming under increasing attack you may need to start investing just to keep your head above water when you retire.

ISA, ISA baby

The first thing I’d do would be to open a Stocks and Shares ISA. These increasingly popular products are available from a wide range of financial services providers. They are easy to open and manage, and critically they enable you to avoid paying anything in taxes on your gains. With a maximum paying-in allowance of £20,000 a year they meet the needs of the vast majority of people, too.

Then I’d go shopping for UK shares that have been washed out during the stock market crash. The 2020 market collapse has seen many great companies frantically sold off along with the bad. As a consequence savvy share investors have a chance to get rich and retire early by buying these brilliant shares at rock-bottom prices and watching them explode in value as the global economy recovers from its recent downturn.

Get rich with FTSE 100 shares

There’s plenty of stocks on the FTSE 100 that I’m eyeing up closely at current prices. I like the look of United Utilities and SSE, firms whose essential services should keep profits growing whatever happens to the global economy. These blue chips offer dividend yields north of 5% at right now.

I’d also buy motor insurance provider Admiral because of its market-beating 6% dividend yield. Precious metals producer Polymetal International could also help you get rich on the back of rocketing gold prices this decade. The dividend yield here sits above 5% for 2020. And I’d also buy Prudential to latch onto booming insurance product demand in emerging markets. This FTSE 100 share is stunning value and trades on a price-to-earnings (P/E) ratio of just 10 times.

This is just a taster of some of the great value FTSE 100 shares that could help you get rich. So don’t worry if you have no savings by 40. By investing in UK shares each month it should still be possible to retire in comfort.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Royston Wild owns shares of Prudential. The Motley Fool UK has recommended Admiral Group and Prudential. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.